Sugar high: Revenue is expected to increase, but low world sugar prices will moderate growth

The industry has experienced modest growth due to a rise in natural sugar consumption. However, low-cost imports are expected to pressure revenue and profit in the coming years, and downstream demand will fall as consumers opt for no-calorie sweeteners. To support future revenue growth, sugar processors will rely on alternative energy opportunities and expansion to other sectors of the economy...purchase to read more.

Industry Statistics & Market Size
Revenue
$10bn
Annual Growth 12-17
-3.2%
Forecast Growth 17-22
Profit
Employment
14,686
Businesses
51

Industry Threats & Opportunities

  • Import penetration and changing consumer trends will pressure the industry
  • Despite the government’s heavy tariffs, import penetration has threatened the industry
  • The industry is largely self-sustaining, using bagasse to power many of its facilities
  • Industry Report - Starting a New Business Chapter

    Barriers to entry into the Sugar Processing industry are high and steady. Capital requirements deter new players from entering the industry. Initial start-up costs are significant as the nature of the industry requires that participants invest a significant amount of money on equipment and skilled labor. High-tech machines can pose very high sunk costs and can deter prospective operators from entering into sugar processing.Established companies that operate on a national scale also pose a barrier. Large operators hold strong product portfolios with high brand loyalty. These companies are preferred suppliers to the country's major food and beverage processors and wholesale markets. Man...purchase to read more.

    Additional Insights for the Sugar Processing Industry

    IBISWorld identifies 250 Key Success Factors for a business.The most important for the Sugar Processing Industry are

  • Proximity to key markets
  • Optimum capacity utilization
  • Proximity to key suppliers
  • IBISWorld analysts also discuss how external factors such as Per capita sugar and sweetener consumption and Price of sugar in the Sugar Processing industry impact industry performance..

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    What's in this report

    What is the Sugar Processing Industry?

    The Sugar Processing industry comprises establishments primarily engaged in manufacturing raw sugar, liquid sugar and refined sugar from sugarcane, raw cane sugar and sugar beets. This industry acquires its raw material from sugarcane growers. Sugar refiners also buy raw sugar from millers. This raw material is processed into a range of sugar products for industrial and consumer use.

    Industry Products
  • Refined cane sugar
  • Beet sugar
  • Raw cane sugar
  • Industry Activities
  • Raw sugar processing
  • Liquid sugar processing
  • Cane sugar processing
  • Beet sugar processing
  • Table of Contents

    Industry Definition
    Main Activities
    Similar Industries
    Additional Resources
    Industry Statistics Snapshot
    Industry Structure
    Executive Summary
    Executive Summary
    Key External Drivers
  • Per capita sugar and sweetener consumption
  • Price of sugar
  • Healthy eating index
  • Trade-weighted index

  • Current Performance
  • Preferential treatment
  • Profit remains sticky
  • International trade
  • Industry landscape
  • Chart: Revenue Growth

  • Industry Outlook
  • Import competition
  • Industry trends
  • Sweet spots
  • Table: Sugar Processing Industry Revenue Outlook

  • Industry Life Cycle
  • Life cycle reasons
  • Chart: Benchmarking - Sugar Processing Industry Lifecycle vs The Economy

  • Supply Chains
    Key Buying Industries
  • Cereal Production
  • Chocolate Production
  • Candy Production
  • Ice Cream Production
  • Cookie, Cracker & Pasta Production
  • Snack Food Production
  • Syrup & Flavoring Production
  • Soda Production
  • Juice Production
  • Grocery Wholesaling

  • Key Selling Industries
  • Hay & Crop Farming
  • Industrial Machinery & Equipment Wholesaling
  • Sugarcane Harvesting

  • Products & Services
  • Beet sugar
  • Refined cane sugar
  • Raw cane sugar
  • Chart: Sugar Processing Industry Products and Services Segmentation

  • Demand Determinants
  • Sweetener substitutes
  • Nutritional concerns
  • Price

  • Major Markets
  • Bakery and cereal producers
  • Confectionery and snack producers
  • Other
  • Dairy and ice cream producers
  • Beverage producers
  • Exports
  • Chart: Major Market Segmentation for the Sugar Processing Industry

  • International Trade
    Business Locations
    Chart: Business Locations by State
    Market Share Concentration
    Key Success Factors
    Cost Structure Benchmarks
    ProfitPurchasesWages and depreciationOther
  • Chart: Cost Structure Benchmarking – Sector vs Sugar Processing

  • Basis of Competition
  • Internal competition
  • External competition

  • Barriers to Entry
  • Table: Barrier to Entry Checklist for the Sugar Processing Industry

  • Industry Globalization
    American Crystal Sugar Company, Amalgamated Sugar Company,
  • Table: American Crystal Sugar Company - financial performance
  • Table: Amalgamated Sugar Company - financial performance

  • Capital Intensity
  • Chart: Level of Capital Intensity for the Sugar Processing Industry
  • Chart: Tools of the Trade: Growth Strategies for Success

  • Technology & Systems
    Revenue Volatility
  • Chart: Volatility vs Industry Growth

  • Regulation & Policy
    Industry Assistance
    Table: Industry Data for the Sugar Processing Industry
    Includes:
  • Industry Revenue (2008-2022)
  • Industry Gross Product (2008-2022)
  • Establishments (2008-2022)
  • Businesses (2008-2022)
  • Employment (2008-2022)
  • Exports (2008-2022)
  • Imports (2008-2022)
  • Wages (2008-2022)
  • Price of sugar (2008-2022)

  • Table: Annual Percentage Change for Key Industry Data
    Table: Key Ratios for Industry Key Data
    Table: Industry Financial Ratios
    Bagasse
  • A by-product of processed sugar used as fuel for boilers to create steam-generated electricity for sugar mills.
  • Genetically Modified (Gm)
  • A technique where specific changes are introduced into a plant or animal's DNA by genetic engineering techniques. The most common modified foods include soybean, corn and canola.
  • High Fructose Corn Syrup (Hfcs)
  • An alternative sweetener derived from cornstarch.
  • North American Free Trade Agreement (Nafta)
  • A generally duty-free agreement signed by the governments of Canada, Mexico and the United States, creating a trilateral trade bloc in North America.
  • Us Department Of Agriculture (Usda)
  • A federal department that administers programs for US farmers and tracks agriculture sector performance.
  • What Our Customers Say

    Why buy this report?

    The Sugar Processing industry market report contains strategic analysis of the key drivers influencing the industry. Save hours of time on research and prospecting using IBISWorld’s standardized, up-to-date reports on thousands of industries. Our industry research provides growth and profit forecasts for a five-year outlook period, presented in a clear and user-friendly format.

    IBISWorld industry market research reports enable you to:
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    • Inform your decisions for marketing, strategy and planning
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    This report on Sugar Processing:
    • Provides Market Size information to assist with planning and strategic decisions.
    • Includes the necessary information to perform SWOT, PEST and STEER analysis.
    • Helps you understand market dynamics to give you a deeper understanding of industry competition and the supply chain.
    • Analyses key performance and operational metrics so that you can benchmark against your own business, that of your customers’ businesses, or your competitors’ businesses.
    The Sugar Processing market research report includes:
    • Historical data and analysis for the key drivers of this industry
    • A five-year forecast of the market and noted trends
    • Detailed research and segmentation for the main products and markets
    • An assessment of the competitive landscape and market shares for major companies
    • And of course, much more

    IBISWorld reports on thousands of industries around the world. Our clients rely on our information and data to stay up-to-date on industry trends across all industries. With this IBISWorld Industry Research Report on Sugar Processing, you can expect thoroughly researched, reliable and current information that will help you to make faster, better business decisions.

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